Feeds

TI, Nokia gang up on Qualcomm

CDMA R'Us

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Maybe there's money in the emerging Iraqi cellphone market?

Although Qualcomm accounts for less than twenty per cent of mobile chipsets, Texas Instruments and Nokia want a piece of the CDMA pioneer's lucrative business.

TI, whose OMAP platform gives it a dominant position in the GSM/GPRS handset business, has announced a deal with ST Micro to produce integrated circuits for cdma2000 1X and 1xEV-DV devices, with Nokia's help. Nokia and TI both have CDMA licensing agreements with Qualcomm.

CDMA manufacturers privately complain that Qualcomm lags in producing chipsets with advanced features that the GSM world takes for granted, such as Bluetooth. TI and Nokia reckon they can produce CDMA chipsets cheaper and bring them to market faster.

Qualcomm shouldn't mind the competition too much: it receives licensing royalties on all chipsets sold. But it will test the boast that Qualcomm can compete on implementation.

Although CDMA is largely confined to the United States and Korea, with 10m subscribers in the highly competitive Chinese market, that was enough to earn Qualcomm a profit of $314 million on revenues of $1 billion in the quarter that ended in March. (After it's accounted for disentangling itself from Brazil operator Vesper).

Qualcomm's licensing business accounts for around a quarter of that billion, and is of course, almost entirely pure profit. The chipset business takes in around two thirds of earnings ($652 million) in Q2 2003, clearing $223 million in profit.

Can Nokia and TI afford to put pressure on those margins (Qualcomm's chipsets profits were down 22 per cent last quarter)? That remains to be seen: Qualcomm starts off with several advantages, not least of which is that it doesn't have to pay itself royalties.

On the other hand, the new entrants will bring OMAP to CDMA - a a hardware platform that's a known quantity for manufacturers. ®

Protecting against web application threats using SSL

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
'Serious flaws in the Vertigan report' says broadband boffin
Report 'fails reality test' , is 'simply wrong' and offers ''convenient' justification for FTTN says Rod Tucker
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.